HOW SONA WILL AFFECT THE PROPERTY MARKET

President Cyril Ramaposha delivered his State of the Nation Address in parliament on 13 February 2020. This speech will have an impact on all sectors of the economy, including the property market.

“The disruptions that suspended proceedings at SONA does not bode well for investor confidence in our nation. Despite this, President Cyril Ramaposha has made some encouraging promises and inspiring statements in his state of the nation address, but I am interested to see how many of these promises will come into being,” says Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

“While some might feel that the presidency has not done enough to solve the country’s most pertinent issues, others will have had their confidence restored by the solutions posed in this address. Though we might notice a positive upswing in market activity following the SONA caused by this renewed confidence, this momentum will wane if people become disillusioned by a lack of implementation. Only once his statements around lowering unemployment, improving economic growth and dealing with the Eskom crisis come into being, will we start to see a notable and sustainable change in the real estate market,” says Goslett.

“At the end of the day, this country does not have an economic problem. It has plentiful resources and immense growth opportunities. There should be no reason we are not among the world’s elite economies. Unfortunately, we have too many people in positions of leadership who have a lack of integrity and a culture of greed and indifference. True change in the form of investment and economic growth will only come about if there is follow through on corruption and consequences for corrupt individuals. The other solutions President Ramaposha posed during his address will mean little to nothing if we do not get this right,” Goslett concludes.